SSE/EFI Working Paper Series in Business Administration
Per Arvidsson, Tomas Movin and Christina Rosell
Empirical study of an team-based incentive model in the Day Surgical Department at Huddinge University Hospital
Abstract: The study shows that a team-based incentive model changed
personnel attitude and behaviour and increased the productivity in the Day
Surgical Department at Huddinge University Hospital. The aims by
introducing a team-based incentive model were to increase the productivity,
to recruit personnel, to strengthen the team feeling and to commit the
staff to work on continuous improvement. A bonus wage system based on
production, financial and patient satisfaction in a balanced scorecard was
implemented in October 2000. The results shown in the study cover the first
year. Quantitative data on production, personnel administration and
financial was collected. A questionnaire on patient satisfaction was given
to patients. Qualitative data was collected by focused interviews with all
personnel in the department and with key persons outside the department.
The productivity measured as the surgical procedures/surgical-room hours
increased by 7 per cent and the surgical hours/surgical-room hours also
increased by 7 per cent. Net income was positive. Financial measured as
total costs/surgical hour decreased despite of increased salaries and
bonus. The patient satisfaction index was rated high. More employees were
recruited than finished their employment. The qualitative analysis
demonstrates that the employees had changed attitude with increased
responsibility and teamwork resulting in an increased productivity. The
reward system achieved a broad acceptance within as well as outside the
department. Knowledge about the financial goals and the incentive model and
information about related matters are fields for improvement.
results of increased productivity and the net recruitment of personnel in
the study is encouraging. However, the results have to be evaluated over a
longer period of time. The future development of the model may include
rewards when achieving goals in the work on continuous improvement.
Keywords: Health care; management control; compensation systems; incentive; incentive model; productivity; (follow links to similar papers)
81 pages, March 24, 2004
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